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A study by the Legislative Revenue Office shows that if voters approve the $733 million tax increase on corporations and high-earning households, it would likely be better for Oregon's economy than spending cuts.

The 27-page analysis of the two legislatively approved tax increases — one on affluent households and another on corporations — is the first such independent study to come out since critics launched a campaign to refer the measures to voters for defeat. The study is likely to provide fodder to opponents and supporters alike of the increased taxes, as the sides seek to frame the economic effects on Oregonians of higher taxes and reduced state services.

Anti-tax forces turned in far more than the required number of signatures for referendum drives on the two tax increases, and they are widely expected to qualify for the Jan. 26 ballot. Observers expect a furious, costly and escalating public relations battle over the measures this fall and winter.